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The Family and Medical Leave Act of 1993 For FedEx Employees

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What Is the Family and Medical Leave Act of 1993?

The Family and Medical Leave Act of 1993 (FMLA) was enacted to help employees who need to take leave for certain family responsibilities, but who are afraid of losing their jobs. Under the FMLA, you are entitled to take up to 12 weeks of unpaid leave for the birth and care of a new child (your natural child or an adopted or foster child) or to care for yourself or an immediate family member who has a serious health condition. You must work for a covered employer and meet certain eligibility criteria.

Tip:  For more detailed information on the FMLA, visit the  U.S. Department of Labor's  website.

Who Is Covered By the FMLA?

Employees of Private Companies That Have 50 or More Employees

You may be covered by the FMLA if:

  1. You work for a private company that is engaged in commerce or in any industry or activity affecting commerce and
  2. The company has employed 50 or more people in total at your worksite (plus all worksites within 75 miles) each working day during at least 20 calendar weeks (not necessarily consecutive weeks) in the current or preceding calendar year.

Employees of All Public Agencies

If you work for a state or local government or a public or private elementary or secondary school, then you are covered under the FMLA, even if your employer does not employ 50 or more individuals. Most federal civil service and Congressional employees are also covered by the FMLA, subject to regulations issued by the Office of Personnel Management. Military families and airline flight crews also have access to FMLA benefits, and special rules apply.

When Will You Be Eligible for Leave?

You may be eligible for leave if you work for a covered employer, as mentioned. You also must have worked at least 12 months (not necessarily consecutively) for that employer, and you must have worked at least 1,250 hours during the 12 months immediately preceding the starting date of your FMLA leave. In addition, you must be taking leave for one of the following reasons:

  •  For incapacity due to pregnancy, prenatal medical care, or child birth
  •  For the care of your child after birth, or for the adoption of a child or placement of a foster child
  •  For the care of an immediate family member (spouse, child, or parent) who has a serious health condition
  •  For your own serious health condition that makes you unable to perform the functions of your job

Caution:  Eligible employees with a spouse, son, daughter, or parent on active duty or call to active duty status have special leave entitlements under the FMLA (see below).

How Does The FMLA Protect You?

Allows You to Take Unpaid Leave

If you are eligible for leave under the FMLA, you can take up to 12 weeks of unpaid leave during any 12 months.

Tip:  Some states have rules regarding leave time that are more generous than federal rules. Check the laws of your state. See Questions & Answers below.

Protects Your Job

When you return from leave under the FMLA, your employer must return you to your former position or to an equivalent job. An equivalent job is one that has equivalent pay, benefits, and terms and conditions of employment as the job you had before taking leave under the FMLA.

Example(s):  When her son was born, Jane, a reporter, took 12 weeks of unpaid FMLA leave. When she returned to work, her former job had been filled by another employee; however, Jane was given another reporting job at the same pay and with the same benefits as her former job.

Protects Your Health Benefits

Your employer must maintain your group health benefits while you are on leave. This means that your health insurance won't be canceled and your employer will continue paying your health insurance premiums, if the employer normally pays them.

Example(s):  Jessica was nine months pregnant. Her doctor ordered her to take time off from work because she was developing severe high blood pressure. But Jessica didn't want to leave because she feared losing her group health insurance benefits at the time she needed them most. Her employer assured her that under the FMLA, she could take up to 12 weeks of unpaid leave without losing any group health benefits to which she was already entitled.

Tip:  If you don't return from FMLA leave your employer can recover all premiums he or she paid for your health insurance during your leave, unless you didn't return for a reason beyond your control, such as the continued serious health condition of you or your family member.

Protects Employee Benefits That Are Accrued

If you receive other accrued employee benefits besides health, such as sick leave or vacation days, your employer must protect those benefits as well. You won't be able to accrue any benefits while you're on leave, but when you return, your employer must give you the same benefits at the same levels as before. Your employer, however, may require you to use any accrued paid leave (vacation, sick, or personal days) for periods of unpaid FMLA leave. Unaccrued benefits (life insurance benefits, for instance) are not protected under the FMLA.

Example(s):  Kenneth took 12 weeks of unpaid leave under the FMLA to care for his newly adopted daughter. Since he had accrued 8 days of vacation time and 3 sick days before his leave time, his employer required that he use this time in place of 11 days of unpaid FMLA leave.

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Special Leave Entitlements for Military Families

The National Defense Authorization Act for FY 2008, signed by President Bush on January 28, 2008, included two provisions that expanded the benefits of the FMLA to assist service members and their families. One provision requires employers with 50 or more employees to provide up to 12 weeks of unpaid leave a year for a 'qualifying exigency' connected to the active duty status of an employee's spouse, son, daughter, or parent ('active duty leave').

The other provision entitles eligible family members to take up to 26 weeks of unpaid leave to care for a wounded or ill service member ('caregiver leave'). The active duty leave creates an additional basis for an employee to take FMLA leave. Specifically, this reason for FMLA leave is for a 'qualifying exigency' that arises from the fact that the employee's spouse, son, daughter, or parent is on active duty or has been notified of an impending call or order to active duty.

Qualifying exigencies include issues arising from short notice deployments, military events, and related activities, certain childcare and related activities related to a service member's active duty or deployment status, making financial and legal arrangements, attending certain counseling sessions, and other events.

The other provision is a FMLA service member family leave program. It provides that an eligible employee may take up to 26 weeks of FMLA leave to care for a spouse, son, daughter, parent, or next of kin ('nearest blood relative') who is a covered service member. The service member must have a 'serious illness or injury' incurred while on active duty that may render the member unable to perform the duties of his or her office, grade, rank, or rating and for which the member is (1) undergoing medical treatment, recuperation, or therapy, (2) an outpatient, or (3) on a temporary disability retired list. The FMLA caregiver leave is available only during a single 12-month period. Covered service members also include veterans of the Armed Forces, so military caregiver leave may also be available to families of veterans who are undergoing medical treatment, recuperation, or therapy for a serious injury or illness.

How Do You Take FMLA Leave?

Give Your Employer Advance Notice

If you know you will need to take FMLA leave in the future for an expected birth, adoption or foster care placement or scheduled medical treatment, you must give your employer at least 30 days notice of your need for leave. If the need for leave suddenly arises or if 30 days notice is not practicable, you must give your employer as much notice as possible. Your employer may also require that you give notice of your intent to return to work.

Comply With Your Employer's Instructions

Your employer may require you to provide certification that leave is necessary because of a serious medical condition affecting you or a family member. Your employer may also ask you to provide a certification of fitness from a health care provider, saying that you are medically fit to return to your job (based on the health condition that caused your absence) if you take FMLA leave for health reasons. Although you may take intermittent leave (leave taken off and on for less than the full 12 weeks), your employer must approve this type of leave unless your leave is to care for someone (including yourself) with a serious health condition.

Know Your Rights

Your employer must tell employees who are requesting leave whether they are eligible for FMLA. Your employer is required to post a notice that outlines the basic provisions of the FMLA and is prohibited from discriminating against or interfering with an employee who takes FMLA leave. If you feel your employer has violated your rights under the FMLA, you can file a complaint with the Employment Standards Administration, U.S. Department of Labor. You can also try to recover damages through the courts on your own.

Questions & Answers

Do You Have to Take All 12 Weeks of Leave?

No. Twelve weeks is the maximum leave you can take in one year. There is no minimum, so you can take as little leave as you need, assuming you are eligible for leave. Be aware, though, that your employer may ask you to take any accrued vacation time or sick days before you take FMLA leave.

If You Can't Afford to Take Unpaid Leave, What Are Your Other Options?

Under the FMLA, none. The law was set up to protect employees from losing their jobs, not to ensure income in the event that you need to take time off from work to care for your family. You may need to use accrued sick days or vacation time. In addition, if you are sick, you may be eligible for disability insurance benefits through an employer-sponsored plan. Check with your employer.

What Do You Do If You Need More Than 12 Weeks Off From Work?

Ask your employer if he or she will allow you to take more than 12 weeks off. Some employers will grant the time under special circumstances. In addition, check your state's laws. Some states have rules regarding leave time that are more generous and encompassing than the federal FMLA rules.

What are the implications of the Funding Target Attainment Percentage for FedEx Corporation employees, and how does it impact the security of the pension benefits offered by FedEx Corporation? This question seeks to explore the nuances of the funding target attainment percentage as reported in the annual funding notice, examining how this metric not only reflects the financial health of FedEx Corporation's pension plan but also how it affects employee confidence in future benefit payments and retirement planning.

Funding Target Attainment Percentage: The Funding Target Attainment Percentage for FedEx Corporation indicates the degree to which the pension plan is funded. A percentage of 101.33% for 2022 suggests that the plan has sufficient assets to cover its liabilities, providing security for employees' pension benefits. This high percentage likely increases employee confidence in the stability and reliability of their future pension payouts, essential for long-term retirement planning.

How does the merger of the FedEx Freight Pension Plan into the FedEx Corporate Employees’ Pension Plan influence the benefits currently available to FedEx Corporation employees? This question aims to delve into the practical changes that may arise due to this merger, assessing whether it aligns with employee expectations regarding their pension benefits and how the transition process is managed by FedEx Corporation.

Merger of Pension Plans: The merger of the FedEx Freight Pension Plan into the FedEx Corporate Employees’ Pension Plan appears to have been strategically managed to maintain benefit stability. Despite increasing liabilities by 5.3%, the merger was structured to ensure no negative impact on the benefit amounts payable to participants from either plan, preserving the expected pension benefits for all affected FedEx Corporation employees.

In terms of investment strategies, what measures does FedEx Corporation implement to ensure that its pension plan investments align with the long-term liabilities expected to be paid out to retirees? This question encourages an exploration of the investment policies in place, examining the asset allocations and risk management strategies that FedEx Corporation employs to ensure sustainable funding for its pension obligations, which could potentially include detailed analyses of stocks, debts, and alternative investments.

Investment Strategies: FedEx Corporation employs a diversified investment strategy across equities, fixed income, and alternative investments, aiming to meet long-term pension liabilities. This approach, which includes both active management strategies and the limited use of derivatives, is designed to generate returns that exceed market indices, thus ensuring adequate funding of pension obligations.

What options do employees of FedEx Corporation have for accessing their pension plan statements, and how frequently are these statements generated? The focus here is to understand the communication strategies employed by FedEx Corporation regarding pension benefit statements, including technological access points and the importance of these documents for employee financial planning.

Pension Plan Statements: FedEx Corporation provides annual pension plan statements through their Retirement Service Center, available electronically each fall. Employees can access their statements online or request them if notifications are not received, ensuring transparency and aiding in personal financial planning.

How are contributions to the FedEx Corporation Employees’ Pension Plan determined, and what role do excess contributions play in the plan's overall funding strategy? This question aims to educate employees about how the company balances mandatory contribution levels with potential excess contributions, exploring how these factors interact to influence the plan's solvency and employee benefits.

Contributions to the Pension Plan: Contributions to the FedEx Corporation Employees' Pension Plan are calculated to meet at least the minimum legal requirement and potentially include voluntary excess contributions. These excess contributions can help manage the plan's funding level and ensure its solvency, benefiting overall pension security for employees.

What types of benefits are guaranteed under the Pension Benefit Guaranty Corporation (PBGC) for FedEx Corporation employees, and what limitations exist that employees should be aware of? By focusing on the guaranteed benefits, this question prompts a discussion on the security of specific benefits provided by FedEx Corporation and highlights limitations, allowing employees to understand their rights fully.

PBGC Guarantee: The Pension Benefit Guaranty Corporation guarantees certain types of benefits for FedEx Corporation employees, such as pension benefits at normal retirement age and most early retirement benefits. However, there are limitations, such as exclusions for benefits without vested rights and recently increased benefits, which employees should be aware of to fully understand their pension security.

In what ways does the FedEx Corporation plan to adjust its pension funding strategy in light of changing federal laws that impact pension obligations? Employees are encouraged to consider how legislative changes influence corporate policies surrounding retirement benefits and the proactive strategies FedEx Corporation might take to remain compliant while ensuring the security of employee pensions.

Adjustments to Funding Strategy: FedEx Corporation is likely to adjust its pension funding strategy in response to legislative changes affecting pension obligations, such as those introduced by recent acts adjusting how pension liabilities are calculated. This proactive approach aims to ensure compliance with new laws while continuing to secure the financial health of the pension plan.

What are the steps that FedEx Corporation employees must take if they are considering retirement, particularly in how to navigate the pension plan and gain access to their benefits? This question aims to provide clarity on the retirement process, ensuring that employees are equipped with the necessary information regarding required documentation, timelines, and points of contact within FedEx Corporation.

Steps for Retirement Planning: Employees considering retirement should contact the FedEx Retirement Service Center to navigate their pension plan benefits. This process involves understanding necessary documentation, timelines, and available support, facilitating a smooth transition into retirement.

How does FedEx Corporation plan to manage potential funding shortfalls in the pension plan, and what mechanisms are in place for notifying plan participants should such an event occur? Employees would need to understand the proactive measures put in place by FedEx Corporation to address funding-related challenges while also knowing what this means for their benefits.

Managing Funding Shortfalls: In the event of potential funding shortfalls, FedEx Corporation has policies in place to manage such situations, including strategic contributions to mitigate shortfalls. The company maintains transparency with plan participants about funding levels and any significant changes affecting the pension plan.

For those seeking more information about their pensions and retirement options, how can FedEx Corporation employees contact relevant departments, and what resources are available for assistance? This question provides an opportunity for employees to familiarize themselves with contact points such as the FedEx Retirement Service Center, emphasizing the importance of open communication channels for addressing inquiries related to their pensions. Feel free to consult the provided document for more in-depth exploration of these topics.

Contacting for Pension Information: FedEx Corporation employees seeking more information about their pensions or retirement options can contact the FedEx Retirement Service Center. This center provides essential resources and support, ensuring employees have access to all necessary information regarding their retirement planning.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
FedEx offers a defined benefit pension plan and a cash balance plan. The cash balance plan grows with interest credits and employer contributions, with a five-year vesting period. Employees can choose between lump-sum payments or monthly annuities.
Operational Restructuring: FedEx plans to streamline its operations and reduce costs by combining its Ground and Express delivery networks. This restructuring is expected to save the company $2 billion by 2025 (Source: Reuters). Layoffs and Buyouts: FedEx has announced voluntary buyouts for certain employees as part of its cost-saving measures (Source: Wall Street Journal). Financial Performance: Despite these changes, FedEx reported strong earnings in the latest quarter, driven by increased shipping volumes and higher rates (Source: FedEx).
In 2022, FedEx enhanced its stock option and RSU programs to include more diverse employee groups, aiming to boost morale and retention. The company faced criticism in 2023 for high executive compensation, prompting adjustments in their compensation strategy by 2024. FedEx now focuses on aligning stock options and RSUs with long-term performance metrics, making it essential to understand these changes in light of the economic and regulatory pressures affecting the logistics industry.
FedEx has taken significant steps to improve its employee healthcare benefits in recent years. In 2022, FedEx launched new healthcare plans designed to provide more comprehensive coverage while keeping costs manageable for employees. These plans included options for high and low deductibles, as well as a variety of wellness programs aimed at promoting overall health and well-being. The company also introduced enhanced mental health resources, recognizing the increasing importance of mental health support in the workplace. In 2023, FedEx continued to enhance its healthcare offerings by introducing personalized care options and expanding preventive health services. The company partnered with local healthcare providers to offer tailored care solutions, particularly focusing on chronic disease management and preventive care. This approach aligns with the broader economic and political environment, which has seen a growing emphasis on employee health as a key factor in business sustainability and productivity. By investing in comprehensive healthcare benefits, FedEx aims to attract and retain top talent, ultimately contributing to the company's long-term success.
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For more information you can reach the plan administrator for FedEx at 942 south shady grove rd Memphis, TN 38120; or by calling them at 901-818-7500.

retirement.fedex.com/retirementbenefitsquickreferenceguide.pdf - Page 5, retirement.fedex.com/yourpensionroadmapoverview.pdf - Page 12, retirement.fedex.com/questionsandanswers.pdf - Page 15, cache.hacontent.com/informationaboutfedexemployeepensionplan.pdf - Page 8, cache.hacontent.com/summaryofmaterialmodifications.pdf - Page 22, cache.hacontent.com/yourretirementbenefits.pdf - Page 28, retirement.fedex.com/transitionguidetoyournew401kplan.pdf - Page 20, fmrbenefits.com/2024annualenrollmentbenefitsguide.pdf - Page 14, retirement.fedex.com/2022pre65fedexretireehealthplan.pdf - Page 17, optum.com/optumfinancialfedexfaqs.pdf - Page 23

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